RMD’s for IRA BDA
I know that for non-spousal beneficiaries that they have to take their RMD’s based on the single life expectancy table, and that factor is reduced by 1 each year, until the beneficiary has distributed 100% of the funds. My question is what factor should be used when someone inherits an IRA BDA, i.e. this would be the second beneficiary beyond the original owner. Do they continue the RMD rate on the original beneficiary, or are they allowed to reset this based on their age?
Permalink Submitted by Alan - IRA critic on Mon, 2017-12-04 18:37
There is no reset. The successor beneficiary must continue to use the same divisors that the original beneficiary would have used. That said, it may be worthwhile to re check that the original beneficiary was using the correct divisors all along so that the successor does not use an incorrect divisor. Successor would have to know the age of the original beneficiary at the end of the year following the owner’s death and also determine whether a separate account for the original beneficiary was established by the deadline if there was more than one original beneficiary.